Horizontal analysis is analysis in which:
A) financial statement lines are expressed as a percent of the base (earliest) year.
B) all items are presented as a percentage of one selected item on the financial statement.
C) a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements.
D) ratios are presented for the past two accounting periods.

Question

Quizplus · Accepted Answer

In horizontal analysis, financial statement lines are expressed as a percentage of the base (earliest) year to analyze the trend of changes over time. Other answer choices describe different types of analysis such as vertical analysis, common size analysis, and ratio analysis.

Horizontal Analysis Is Analysis in Which